SOLUTION: How many years will it take $6,000 to amount to $8,000 if it is invested at an annual rate of 9.0% compounded continuously?
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Question 624014: How many years will it take $6,000 to amount to $8,000 if it is invested at an annual rate of 9.0% compounded continuously? Answer by EdwinParker(16) (Show Source):
You can put this solution on YOUR website! How many years will it take $6,000 to amount to $8,000 if it is invested at an annual rate of 9.0% compounded continuously?
A = Pert
A = final amount = 8000
P = beginning amount = 6000
r = rate expressed as a decimal = .09
t = the number of years = (unknown)
8000 = (6000)e(.09)t
Divide both sides by 6000
= e.09t = e.09t
Since A = eB is equivalent to B = ln(A),
,09t = ln()
t = ()÷.09
t = 14.81481481...
Answer: about 15 years.
Edwon
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